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How does an Australian crypto exchange work?

Once you decide you want to buy Bitcoin and become a part of the cryptocurrency market, you should be able to
identify the inner workings of an Australian crypto exchange. In this article,
we are going to explain the technical and the economic components of a virtual
trading platform.

The exchange is a digital marketplace that acts as an intermediary between
buyers and sellers of crypto-coins and fiat currencies (AUD, EUR and USD).

Sign up for Blockbid trading platform and be the first to be notified when new currencies go live.

Let’s start off with the basic principals of trading on an exchange. The
role of the platform is to match buyers and sellers of any given cryptocurrency,
and it lets you, as a trader, place a market order or a limit order.

Market order - is when you place an order through the service to buy or sell immediately
at best available current price.

Limit order - is when you place a “take-profit” order through the service to buy or sell
at a previously set price.

For example, if you want to buy Bitcoin with a market order on the exchange, you
will acquire your crypto-coin at the best available current price set from other
sellers at the moment. Your order will be filled without any restrictions.
However, if you are waiting for a better price (buying or selling), then you will
place a limit order, meaning your order will not be filled as long as the price
is not matched (price restrictions).

What the virtual exchange does is that it allows you, as a trader, place these
orders, and it matches them with the requirements of the other trader orders on
the platform. All cryptocurrency exchanges have transactions fees, which apply
for every order completed through the platform.

The best cryptocurrency exchange in Australia-Blockbid

If you are searching for the best cryptocurrency exchange in Australia to start
trading, then you should consider Blockbid. It runs on Australia’s fastest exchange network, which offers direct data links
to over 180 co-location facilities on five continents. Furthermore, you can trade
with all of the mainstream fiat currencies and popular Altcoins on the same platform
without losing money in fees and time in additional transfers between exchanges.

Blockbid is an Australian crypto exchange based in Melbourne, and it has an
experienced team of developers, Blockchain experts, ASX traders, a brokerage
specialist, market research advisors and a corporate legal team. The team behind
Blockbid includes Ben Sapper (CEO), David Sapper (COO), Gabriel Govinda
(Director), Michael Zollo (Corporate Advisor), Luke Hamilton (Chief Technology
Officer) and Emma Hoffman (Chief Marketing Officer).

Blockbid tokensOn the Blockbid ICO crowdsale, 80 percent of the total supply of Blockbid tokens
were available (maximum of 30 million). You can use Blockbid tokens to reduce
transaction costs on the exchange, meaning that, as a holder, you will receive
a 100 percent discount on transaction costs during the first year and a 50
percent discount every year after that.

They function like time units, for example, one Blockbid token gives you a
30-minute window in which you can trade as much as you want on the platform without
paying transaction fees. If you own more then one, you can combine them and use
them as you wish.

Blockbid featuresThe emphasis on the Blockbid exchange is put on security. The virtual platform
features full cybersecurity insurance, and it has an offline multi-signature
hardware vault for storing crypto assets. It can perform up to 1 million
transactions per second, and it can facilitate the trading of more coins on a
single platform than any other exchange in the world.

Blockbid has a user-friendly interface, which allows traders from all levels
to trade on the exchange intuitively. Blockbid is fully compliant with Australian
cryptocurrency laws and AML/CTF guidelines drawn by AUSTRAC.

The Australian cryptocurrency exchange regulations

Since April 3, 2018, the Australian Transaction Reports and Analysis Centre
(AUSTRAC) has announced that all Australian cryptocurrency exchanges must
register with the authorities and comply with AML/CTF guidelines. Australian
exchanges have a grace period till May 14, 2018, to register with AUSTRAC.
They are obliged to implement the following changes:

Exchanges have to develop a unique program that regulates money laundering
and terrorism financing risks. The in-house rules have to describe the
procedures for identifying, mitigating and managing threats.

The cryptocurrency platforms also have to verify the identity of their clients.

Every transaction that falls under suspicion regarding AML/CTF guidelines and
is $10,000 or more has to be reported to AUSTRAC.

Certain records should be kept at least seven years.

How are the new cryptocurrency regulations affecting the traders?The opinion on this subject is divided among traders. Some believe that the legal
framework will lift consumers to try and test the waters of the prevalent
cryptocurrency industry, while others argue that it will chase investors
offshore. However, the new laws are corresponding to the global trend towards
cryptocurrency, with Canada, the USA, the UK, Japan and Russia drafting and
implementing their own crypto legislation.

The end game for cryptocurrencies is mainstream adoption, and a legal framework
is a necessary step in that process.

Choosing a crypto exchange in Australia

Choosing the right crypto exchange in Australia can affect not only your trading
experience but also your financial advances. With Blockbid, you wouldn’t have to
worry about the security of your crypto assets and, most importantly, you can save
time and money by trading with more crypto-coins on a single platform than any other
exchange in the world.

“Bitcoin gives us, for the first time, a way for one Internet user to transfer a
unique piece of digital property to another Internet user, such that the transfer
is guaranteed to be safe and secure, everyone knows that the transfer has taken
place, and nobody can challenge the legitimacy of the transfer. The consequences
of this breakthrough are hard to overstate.”

When choosing an Australian crypto exchange, you should always have the Australian
cryptocurrency regulations in mind and if the virtual platform is compliant with them.
One of the main goals of the Blockbid exchange is to aid with the development of the
global cryptocurrency and Blockchain community. If you want to learn more about
cryptocurrency, read Blockbid’s Bitcoin guide